- tom: is tim armstrong executive of the year? cory: i think he does a great job. there are a couple apple facebook, he has done a great job building this business. tom: does it really make any money? i find it fascinating. tobias, it feels like a 1999. that is the last time the canadiens won. tobias: 1993. cory: within the first year, for example, when most google searches were done on mobile devices. tom: is tim armstrong a threat to mark zuckerberg? cory: i think it is a different kind of business, but when you look across apple, amazon, and other us verizon aol these businesses are looking at advertising businesses and publishing businesses. amazon, for example, has an advertising business that is doing $200 million in topline revenue over the year, but we do not notice because they do not disclose it very well, but they have a very big advertising business. aol has a lot chance to do a lot of big thing. brendan: one of the praises you view from both verizon and tim armstrong are multiscreen. they will be selling ads against c

we will talk to aol's ceo tim armstrong. we will about why his deal is the best thing for shareholders. ♪ alix: we are millions away from the closing bell. this is bloomberg markets. i am alix steel. bell sounds] by 30 sevendow off points, the s&p off six, but let's put this into perspective. at one point, the dow was off 180 points, at its session low, and then it clawed its way back to finish lower by 37 points. taking a look at the treasury markets, the 10-year yield at a high, and bonds we are seeing coming to a little bit of a pod here in the u.s.. i enjoy now by our bloomberg markets managing editor, joe weisenthal. within the s&p, you saw energy have a big run, up by half of 1%, and we saw tell a conflict into positive territory, while materials and health care really lagged. : yes,

aaron: i think they have a great leader in tim armstrong. i think he has the right advice. everybody is waiting for the move from traditional tv to on demand and streaming, and i think aol is in a good position to capitalize on that. i don't know if they have a lot of choice. emily: john, things like huffington post and others, what happens to those properties? john: a lot of people think they could be spun off or turned into another venture, but i believe it is very important for verizon to actually have direct consumer contact with a product that gives them a right to have a relationship, and the equivalent of dropping a cookie on that consumer so they can track them a cross device, and that is something aol is very good at. they have built that muscle over the last couple of years. the rise and got slapped on the wrist because they did not have that connection with the consumer, so i think they will keep the content. that is what i would bet on. emily: all right, john, you are staying with me. thank you, aaron. we are asking ourselves when is too much of something just t

i imagine we'll talk to tim armstrong more about this. this has more to do with programmatic advertising. but, you know this is one of the companies when you think about aol, 2009 tim armstrong came to this company and people counted this company out. it was done, over with if you had an aol e-mail address, you were a has been. he bought huffington post and changed the perception of what this company is and what it is all about and has become a real major media company. when you look by the way, looks like the stock is up about 73% under tim armstrong's tenure. he joined in 2009 and if you remember a period at which he also paid a huge dividend to shareholders after he found a remarkable amount of value in the company. >> in the patents. >> that he sold. >> they had found these patents which nobody had included in the value of the business. >> verizon has the money and use commercial paper for what it doesn't have. aol/time warner one of those companies was valued at $100 billion. so, this went to under a billion dollars and now tim is se

. ♪ >> verizon to buy the house of two moms -- tim armstrong. $50 per share. stephanie: greece will pass another hurdle this week. other payments between now -- they may not get that far. john kerry is in russia for his first meeting with vladimir putin in years. the company throwing in to the money market ring. in competition with two maybury -- major tech names. >> the most expensive painting ever sold in auction. an anonymous telephone bidder for $160 million. stephanie: a lot of news this morning. for the second time in three weeks, nepal has been rocked by a killer earth quake. 7.3. centered 50 miles outside of nepal's capital. the jolt was felt five hundred miles away in new delhi, india. the click caused landslides in remote areas. 36 people have been killed and more than one thousand injured. we spoke to that under armour climber who rescued 20 himself. its test vote in the senate on the controversial trade deal. it holds a procedural vote on whether it gives president obama authority to negotiate the agreement. the president finds himself at odds with

coming up later today, we will talk to tim armstrong at 4 p.m. the u.s. senate is preparing for a test vote on an asian trade legislation would give president obama fast track authority to negotiate a deal. the president has aligned with the public is on the issue. many democrats say this would hurt u.s. jobs and wages. sir richard branson's virgin group is getting into a new game. they say the new enterprise is going to take a run at what it calls but is of a tory fitness offense like running and cycling. hired mary -- the firm will be headquartered in new york city. sequel opens" today in china. lton" is dominating the box office, it has taken $310 million so far. raked in moreovie than $1.5 billion but analysts say the sequel continues to fall behind the original. soaring to greater heights in dubai, a stuntman and his protege took to the skies in jet powered wings. moving through the air at 125 miles an hour. they completed the first twin human for nation flight in aviation history. those are your top stories we are following at this hour. hour, up in

don't miss tim armstrong on bloomberg at 4:00 p.m. to talk about this make the deal. still ahead, harvard's loss is another ivy league's game. made anotherz and big real estate that but this time at his on the moderate gale. details, coming up. mater yale.n alma details, coming up. ♪ welcome back to bloomberg market day. i am him fox. betty: i am betty liu. let's get straight to julie hyman. we are seeing red in stocks. should pointgh we out it is not as deep as earlier in the session when we were watching that active on route happen in europe. we are seeing major averages down around .5 1%. that is considerably better and about half of what it was earlier. energy stocks on the rise of oil and we will get to that. technologyalth care, are leading some of the declines. imagine we have been watching the bond market and the bond is a lot that really began in europe after the long bond rally that have been occurring previously. now that the european markets are closed, it seems as though that selling pressure has abated. abated almost completely in the 10 year for examp

but i think this deal is sort of a verdict on tim armstrong's tenure at the company. he comes out looking positive. he's not perfect. i'm sure if i was him and i could go back to 2009 i'm not sure i would take this job in the first place, once he got in there he sort of had to play the hand he was dealt. i think he's made smart m&a decisions all along the way. i'm a yahoo shareholder, i wish marissa mayer was half as smart with her m&as tim armstrong has been with with his shareholders. i think shareholders are happy with that. >> a potshot at marissa mayers, is it not? >> i think tim has been a great shareholder on behalf of aol. this is 4.4 billion-dollar company. yah yahoo, if you back out the cash as well as their asian assets is worth about $negative 5, negative $6 billion. think that speaks volumes about the leadership of both companies. >> eric, jim lebenthal, your last point begs the question, why wouldn't verizon have bought yahoo. i argue it's a better site and they get it for a negative value. what's your thought? >> i'd like that as a yahoo shareholder, to

tim armstrong pivoted aol from a content focused company to an ad tech focused company. it's doing really well. why didn't they do a biz dev deal? $ $4.4 billion is a lot of money. it's interesting they went that far for it my feeling was tim said hey, you want this? buy the whole thing. >> when the story came out in january, bloomberg reported there were talks going on and at the time it did sound like it was maybe more of a partnership. john, and that sounded really is getting investors' attention is where tim armstrong said he didn't shop the company around. it was partnership talks with verizon that turned into a deal. what's ahead for that situation? does someone come in and make a competing offer? is that unlikely at this point? >> i don't know. what, it was interesting to me is looking at some of the competitive companies in the various spaces where aol plays, take a look at tube mogul for instance, which has a software, a service platform in programmatic advertising, it's down 3% this blorng. look at you, me and tremor which are prom at ik ads, their market caps

betty: that was tim armstrong, chairman and ceo of aol earlier. ever had problems with an outdated credit report? two big banks are taking steps to help more than one million americans. we will be back. betty: let's bring you the most important stories -- matt miller and bob every are joining me. number four is bank of america's is looking to put to rest debt bills that are alive and credit reports. the move could provide relief to more than one million americans who have had to deal with marks on their credit report. bob: the reputation of the big ad banks -- we had them crash the system in 2008 and now the support from sylvia jessica greenberg. they have been accused of a debt collection tactic effectively holding credit reports hostage and refusing to fix the mistakes unless people pay money for debts they don't know. matt: because they've gone bankrupt? bob: the debts have been swept aside legally in the banks want to make them pay. matt: what you are saying is that people who went bankrupt in the past will have better credit scores now questi

i think tim armstrong will be very happy. lowell mcadam will let him do what he wants, which is develop great programming and have a tremendous ad distribution platform. this is a brilliant move by tim. when i spoke with the company friday, i said you guys are in trouble. you cannot afford to stay independent. they won't let you. there is too much opportunity. this is very much like jeff buccus who is a great american. when it was clear, what happen d happened. this is verizon saying we've got a pro in armstrong. he wants to grow scale. we want to grow scale. we watch -- i don't know how many programs you watch on this. >> mobile video platforms and being able to deliver ads, programmatically to wire devices that are being broadband in because that's where we are headed, not necessarily the big thing on the wall but what is everybody looking at in the home? >> maybe they are looking at bill simmons. >> or looking at ipad or other devices. >> right. there are personalities. >> this is a drop in the ocean for verizon. frankly.

>> i mean, tim armstrong probably tied himself in the back and he deserves to. a few years ago, when it split with timewarner, people thought aol might be done. it had this legacy dial-up business that was going nowhere. it was a business that would fade. it had a media business -- >> do you know anybody who uses aol? >> unfortunately, i know a couple. nobody is buying aol. only those people who have that fo for years. armstrong started going after businesses he had a future. a big part was online video. particularly serving ads on video. it's not producing great television. doing flashy things. but it's a business we've seen has a lot of money heading toward it. companies like google and facebook are also hero too. liz: listen, money is sexy, jennifer. we are in that business. get right to it: does aol, verizon, does that spin-off huffington post? >> i think they do. i don't think verizon's long-term goal is to own the content. i think they want to own the highway in which the content is being delivered on. we know wireless will play an important role. those ne

tim armstrong will continue to lead aol's operations. this is verizon's largest attempt to get new revenue streams beyond calling and data services. olivia: financial markets are in for a rocky regime change when the fed starts raising rates. that is according to bill dudley. great pump isrst going to have major implications in matter how will foreshadow they would be by the u.s. central bank. he made his remarks at a speech in zurich. erik: exor is raising its offer to about $2 billion. they turned down the original approach. they are offering seven and a half dollars more per share. the ceo told bloomberg he believes that he will eventually be successful. >> there is no need for convincing because there is a much superior offer. 175 pointposing them u.s. dollars for cash. with certainty. that is by far superior are all shareholders, of which we are today the largest, having acquired more than 9% for its employees. exor is an italian holding company. they control fiat chrysler. toy're pushing for the deal reduce exposure to the automoti

tim armstrong and thanks to cory johnson. "bloomberg market day" will be right back. ♪ alix: welcome back. for more on the after-hours markets action, want to go to julie hyman at the breaking news desk. with: go daddy coming out the first earnings report since its ipo on march the first and it looks like earnings are coming in better than estimated. it lost a penny smaller than estimated by analysts and ,evenue, which was up by 17.5% estimate. revenue and earnings, looks like eating estimates. the company also talking about some forecast for the second quarter. being revenue is going to $395 million. analysts estimates was on the lower end of that were cast. firstdy, looks like the earnings report on a relative aces is a strong one. also numbers coming out from a big drug distribution company topping estimates by $.20 a share. estimates,sing almost in line but a little shy of estimates. 19%, and the company coming out with a forecast for the full year. we are also waiting for earnings from zillow and we will bring those to

has tim armstrong been good for aol? he has been terrific. not only because of the share rises but because you turn the company around to the point where it is a leader in video, a is a leader in video advertising, which is of course where all the money is going. it is moving from television to video. he has positioned the company so it can be acquired for 4.4 billion. while it is a drop in the bucket for verizon, it is a cash transaction and tremendous whether a well shoulders. pimm: you are the m&a editor here bloomberg, if you missed out on by aol shares and getting taken out at $50 a share by verizon, what should you be buying right now? jeff: you would get away from technology and look into oil and gas. that is where the next deals are coming. on a well, it's not a high premium. olivia: 17%. jeff: and maybe 20% over the last several weeks. we don't think yahoo!, at&t, we don't think anyone knows is looking to buy. olivia: in terms of heat of the market, a well with the market peak, do you think aol has once again hit the peak? jeff: this

tim armstrong with the $276 million his shares are now worth, is he the only real winner here? cara joins us on the fast like. great to get your take on this kind of thing. do you think he's the only winner out of this whole thing? >> well, he's always going to make a lot of money here. it's not that big of a premium over when aol went public. the question is what's going to happen to aol including the content. that's the big question. what are they going to do with those or is it just verizon getting into the market which i think it is. many agree. >> what's the latest, kara, because you had an article this morning about aol possibly looking for a buyer for huffingtons post? >> he's been talking to the private equity while this is going on. it's part of the potential deal. verizon did not want to and there's a possibility of doing the joint venture where they would hold some of the ownership and then get investment. content is super expensive and so is the huffington post. they have a ton of competition. they're valued. i think they got a huge amount of cash to spend. it's rea

so tim armstrong? [ applause ] so tim -- we are -- we have -- i've interviewed you -- i'm going to put this timer here -- thank you for dressing up. i appreciate it. >> there's a microsoft convention across the street. i was debating what to wear. and i went in there and said to my assistant, see, look, everybody is dressed like i am. all these microsoft signs are all over the place. are they getting back into cable? >> they said this is the microsoft convention. you're in the wrong place. now i'm back. >> i thought i told brian i was thinking of coming out here and cutting off his tie. but since he gave me millions of dollars in investment it could go either way. it could be adorable, kar or let's have her killed. maybe a little bit of both. let's talk about where things are going with video. you are famous for having things recorded of you. tim had a meeting where he fired someone publicly. which was probably not the best idea but it's someone was there and you would call me and say there is not any

tim, thank you for joining us on this day, tim armstrong, .eo of aol, and thank you we will be right back. ♪ the: welcome back to bloomberg market day. i am alix steel, and we go to senior markets correspondent julie hyman at the news desk. julie: coming out with a first earnings report since their ipo on march 31, looks like earnings are coming and better than estimated, losing one penny smaller than had been estimated upgo daddy, and this was above the 373 million dollars that analysts were anticipating, so revenue and earnings it looks like beating estimates. the company also talking about some forecast in the second quarter. they were saying revenue is going to be $390 million or more, and analyst estimates were on the lower end of that forecast, so go daddy, it looks like the first earnings report on a relative basis is a strong one. i also want to mention numbers coming out from a big drug distribution company, earnings also topping estimates by $.20 a share, $2.94, the earnings-per-share number, but revenue missing estimates, almost in line, but a very little bit shy of esti

kara: we will have a talk with tim armstrong from and well. -- from andol. i have written two books about aol, which is a lot. i know the company very well. i thought tim would be a good example of what's been going on the thought behind a lot of creation of original video and where video is going and how we are changing. tim armstrong. [applause] i have interviewed you -- thank you for dressing up. i appreciate it. tim: there's a microsoft convention across the street. i was debating what to wear. i said to my assistant, everybody is stressed exactly like i am. all these microsoft signs are all over the place. are they getting back into cable? kara: i was thinking of coming out here and cutting off his tie. it could go either way. let's talk about where things are going with video. you are famous for having things recorded of you. tim had a meeting where he fired someone publicly. you said there's not going to be any video or audio of it and within seconds, there was audio of the whole thing. what is wrong with you? tim: one thing that is really important t

>> tim armstrong is an ad salesman. he was in charge of advertising at google before he came to aol. this is the first guy verizon ever had that understands the real value of advertising in mobile. he had no place to go. he had grown aol about as far as it was going to go. when it was spun out from time warner it was 3.4 billion market cap as an independent public company. $4 billion is knot much of a premium. his company's market cap was $4 billion a couple months ago. so verizon's is getting a relative bargain. liz: very much so. >> the big thing they have got, a, advertising as a dual revenue he will stream, and b, tim armstrong. he is really mr. advertising. david: dennis it will still be a tough sell because what they have to do, in your piece today, when you described what was going on, you said verizon and at&t, i'm quoting you here, have the feel of a crumbling empire. what did you mean by that? >> there are a couple different permutations of that. if you look what is changing in the networking space, wireless n

the aol ceo tim armstrong will stay on with verizon to build the content business. for "nightly business repor" i'm morgan brennan. >>> before there was status updates, text messages and 140 character tweets there was aol it. was the company that launched the modern era for many of us and the original disruptor that brought america online on to something called the worldwide web and into the digital age but along the way the disruptor got disrupted. quantum computer used a messaging service back in 1989 which liy changed the world. young market whiz steve case saw the power of giving everyone access to the internet. so it is no accident it took the name american online in 1991 because it literally got america online brxt there was social media and snap chat and facebook there was aol with the im's and early chat rooms. former aol executives like regina lewis still marvel at what they accomplished minting tech millionaires along the way. >> they had the patent and the invention and a company ahead of its time. >> aol was a rising power in computing, in media, in comm

the ceo tim armstrong said it was driven primarily by advertising. >> the strength that you see in the numbers are essentially our ability to grow strong sets of supply across mobility video, problematic and ad up and we are doing a job navigating the flat form shift from offline to online and that is great. >> and the shares responded popping up 10% to $43.42. >>> the ago row chemicals company significant renta rejected a takeover offer. they said it under values the company and didn't take into account regulatory risks. it was up more than 1% to $120.79 and sithenta closed at $85.75. >>> and a removal of a company ceo and the board chairman as well. they need a good mattress tonight for serta. they have been the target of an activist to improve performance. shares were 3% higher at $62 a share. >>> investors had a strong appetite for bojangles in the trading debut. the joint which specialized in chicken and biscuits sounds good. it offered 8 million shares priced at $19 and shared soared to $23.75 and an increase of 25% per day. >>> the department of justice is reaching a settlement

people who doubted tim armstrong, he wilbury you. >> inflection quarter. >> inflection quarter. exactly right. i think people ought to go through because they recognize tim armstrong has come up with a way to grow that is not just google. google. >> up next, the opening bell followed by labor secretary tom perez and media mogul barry diller. well, a mortgage shouldn't be a problem your credit is in pretty good shape. >>pretty good? i know i have a 798 fico score thanks to the tools and help on experian.com. kaboom... well, i just have a few other questions. >>chuck, the only other question you need to ask is, "what else can you do for me?" i'll just take a water... get your credit swagger on. become a member of experian credit tracker and find out your fico score powered by experian. fico scores are used in 90% of credit decisions. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more ins

kara: we will have a talk with tim armstrong from a.o.l.. we want to talk about where internet video is going. i have written two books about a.o.l., which is a lot. i know the company very well. it iterated so drastically over the years and is continuing to do so. i thought tim would be a good example of what's been going on, the thought behind a lot of creation of original video and where video is going and how we are changing. so tim armstrong. , [applause] kara: tim, i have interviewed you. thank you for dressing up. i appreciate it. [laughter] tim: there's a microsoft convention across the street. i was debating what to wear. i said to my assistant everybody is dressed exactly like i am. all these microsoft signs are all over the place. are they getting back into cable? they said this is the microsoft convention. you are in the wrong place. kara: i was thinking of coming out here and cutting off his tie. since he gave me millions of dollars in investment it might not be a good idea. it could go either way. it could be a adorable or not,

tim armstrong tells us why the deal is mainly about ads. aboutt: mcdonald's is all burgers and fries spirit we will tell you why it will soon be about kale. alix: global bonds launched forge a 56 billion dollars in about three weeks. traders on high alert in the free world. ♪ alix: good afternoon timeouts still here with scarlet fu. let's get a look at the markets with less than an hour to go until the closing bell. take a look at the nasdaq and the dow supporting losses now. points.500 losing 4.5 we really have not gone into positive territory all day. >> we deftly made up some of the losses we saw a earlier in the day. the global bond route we have seen here taking a pause

what tim armstrong has bought because we like to pay attention to the "huffington post." that's what verizon is buying. you have at&t you have revise on with aol and ads. how do they compare? >> they are both diversifying into video and content. you look at where you see growth. that are are now that we know who they are tying up with which is better? >> for the long-term strategy we prefer the long-term of verizon. it's a harder road where they optimized the core and we're going after a video and pushing it out to the edge. they take content and optimize the core network. they go after the same thing. they go back on the margin and they pay off a little bit better. by the way, someone else might be able to come in with a higher bid. . >> here's my question. hanging out in the wind for yahoo. >> that is everyone's obvious question. obviously they will go to at&t right now. the question that yahoo is in the same place. they have a content business that they don't value very much. in retrospect the question is does someone want to buy all of that or do you cut it into parts

armstrong will continue to lead the company. >>> and uber valued the company at $50 million and that is more than fedex or capital one or direct tv. investors want in and the company is able to raise a lot of money and they are looking to branch out beyond ride sharing like food delivery and bike messengers. >>> the nissan moreno got the best rating from the insurance institute for highway rating and ford flex the second best acceptable rating, it happens web the front collided with another object touch as a utility pole. >>> one university is taking a new approach to getting the students through the ceremony in an orderly fashion. rowan university is holding commencements weeks holding six ceremonies in a week. today was the largest of the graduations 950 students in science and math and engineering received their diplomas. marcy dunbar gave the address and got an honorary degree. >>> a new place for children to enjoy the outdoors officially opened in strawberry mansion, mayor michael nutter was on hand for a look at the hank aaron spray center, the 76ers mascot franklin was on hand

tim armstrong saying the company decided to sell to verizon to better compete in a marketplace that will be dominated by large players. looking at shares of aol, higher on this news verizon, slightly lower. >> morgan brennan from cnbc thank you. president obama addressing the question of poverty. how big a problem it is in this country. >>> i'm pat lawson muse at the live desk. president obama speak at georgetown university. he's meeting with a diverse group of faith and political leaders to talk about ways to overcome poverty. and make it a national priority. income inequality a key issue for the president and catholics especially under the leadership of pope francis. it's also likely to be a decisive topic in the 2016 presidential campaign. >>> thank you. as you know, poverty and income inequality key issues for the president and catholics especially around proposeope francis' leadership. nationwide more than 1 in 5 children are considered poor. that is 16 million children throughout this country. now the children's defense fund says that a family of four is defined as poor if living o

tim armstrong may be more than $200 million richer after that sale of aol to verizon closes. and has stockceo options plus he also controls 1.7 million shares of aol and has received $34 million in salary and bonus the past five years. he says he will stay on it aol after the deal is complete. olivia: happy birthday, mark zuckerberg. he turns 31 years old today. he has more billions than he has years. the facebook founder is worth amost $35 billion, it's fortune that increased almost $400 million in the past 24 hours. he became the world's youngest billionaire at age 23 back in 2008. he is currently the 18th richest person on the planet. washington, d.c. sports fans know the agony of defeat this morning. sorry, folks. within the space of 27 minutes last night, they suffered through to play of losses. hawks scoredanta with two seconds to go giving them an 82-81 victory over the washington wizards. the hawksley that series three games-two. then the rangers scored in overtime to give them a 2-1 victory over the washington capitals in the nhl playoffs. if there is one bright spot

ceo tim armstrong will continue to lead company at least for now. verizon announced it would launch a video service over the summer for mobile devices with hopes to increase revenue. according to reuters verizon's chief financial sister said it will be paid content aimed at younger viewers. aol will play into. to tap into the growing digital ad market as well possibly driving more competition with facebook and google. the move will also allow verdicts to rival at&t's pending acquisition of at&t which bets on mobile video. analysts do not love the move for aol's stock. analysts at cantor fitzgerald and ever core both downgraded shares of aol despite this aol shares are jumping. they're up better than 18%. verizon shares moving on this news as well. melissa full disclosure, my fiance works for "huffington post" which is aol company. deirdre: thanks very much jo. stocks paring back losses. energy sector one bright side as oil jumps back above $60 a barrel. another price dip may be on the way. nicole petallides is standing by. tom sullivan john lonski f

>> sure, because a lot of the sites that tim armstrong and aol acquired, they used to be small scrappy independent sites, and they end up with resources and not scrappers. the good news, it's not scrapping the signals, so it's not a comcast and time-warner merger, where the company that you pay is consolidating but the consolidation of content to major, major companies does give some people paws. >> what else are you working on for the program document? >> well, we have great conversation with pakistan, and the article that pakistan held osama bin laden as sort of a prisoner since 2016. and i'm going to talk to the former held of pakistani intelligence, about how plausible that scenario is. >> and be sure to catch ali velshi, his new program. 10:30 eastern and 7:30 pacific here on aljazeera. >>> greece made another huge payment today on its debt to the international monetary fund. but the nation had to admit that it had to dip into its emergency fund for the cash. they're under more than pressure now to find a way out of their financial troubles [ chanting ] >> it was victory for hundr

aol ceo tim armstrong joins us with his results. stick around, "squawk box" will be right back. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? >>> bob doll is here on the market's expectations for april pay rolls and what it could take to change the fed's mind on rate hikes. >>> we'll tell you why summer jobs are harder to come by. >>> everyt

tim armstrong will remain the head of aol as it becomes a wholly-owned subsidiary of verizon. this isn't the first time aol has been involved in a purchase. back in 2000, aol at the top of the dot-com boom bought and merged with time warner. it's now considered one of the biggest business blunders ever. our tech reporter wrote about it in a book the deal they called it there must be a pony in there somewhere, referring about an old joke about a kid digging through manure to find the. >>> a book about elon musk causing controversy. the author recounts a situation where musk berates a tesla employee for missing work in order to witness the birth of his child. you need to figure out where your priorities are, musk is reported to have said. but musk responded on twitter this morning saying it is total nonsense and hurtful to claim that i told a guy to miss his child's birth just to attend a company meeting. i would never do that. so it's heart of a he said, he said. in the book the claim that musk did this refers to an unanimous tesla employee recalling but not showing the email t

so in a cnbc interview this morning, aol's ceo tim armstrong said the company decided to sell to better compete in a marketplace that will be increasingly in by large players. shares of verizon are trading modestly lower, aol, on the other hand soaring up 18%, 19% on this news today. >> to your point about the competitive nature of this online and mobile video, the new landscape that will -- that exists now and will only grow. >> exactly. you're seeing every major company from the internet service providers, to the actual content creators themselves the telecom giants like at&t and verizon, everybody is working on these plat forms to deliver streaming video. you think about netflix and how successful that's been. this is sort of the next generation in an idea of not necessarily having to turn on tv to get content. everybody's focusing on this and we're seeing big deals in this area. >> incredible. thank you so much for the update there. >>> coming up jeb bush is under fire from both democrats and fellow republicans over his comment that he would have authorized the invasion of iraq. the

ceo tim armstrong came aboard in 2009 and really put the focus on that technology. verizon plans to launch a mobile video service this summer and would likely use this technology in order to leverage the advertising dollars from that perspective. >>> also this morning, gap, dancings cantily after reporting that its same store sales in the first quarter fell 4%. the name sake gap chain down 10%. old navy was the lone bright spot as its sales were higher by 3%. sales of gap are dropping this morning in the early going. >>> stock market a slow start on monday and giving up more ground this morning. let's take a look at the big board and see how we're doing so far. the dow dropping now more than 160 points. nasdaq is down by 54. s&p lower by 17 points. shares in the gap down 3.5%. michelle and frank back to you. >> all right jason brooks thank you. >>> it is 6:44 now. the may or of san jose says he wants every top on the street to wear a body camera by next spring. sam liccardo wants to shorten a test run with the goal of having all police officers on patrol wearing cam

armstrong and we'll see how good it is for verizon. going forward. >> yes indeed, we will see, kara swisher, thanks, kayla. we'll see you a little later on. kelly, how are the markets looking? >> 50 minutes to go here before noon. i'm used to saying that because of the closing bell. in this context, it becomes a little less relevant. but stay with me, the dow jones industrial average is up about six points right now. the s&p barely positive. the nasdaq up just about 1. we had the monster session yesterday, closed at record highs for the s&p, trying to hang on into positive territory today. keeping an eye on the 10-year as well. shares of pandora sliding as the company lost its royalty rate fight with music publisher bmi. they're down a little less than 3%. >>> coming up on the program, cloud storage company dropbox a major part of unicorn club, a valuation over $10 million and the ceo will join us in a cnbc exclusive. >>> plus she's the first woman to crack the top ten on the forbes midas list. jenny lee from ggv capital is with us. an

ceo tim armstrong will remain in charge of aol. here he is announcing the deal on cnbc. aol will be an entirely-owned subsidiary of verizon. verizon gets armstrong's ad technology as well as several tech blogs including tech crunch. now, the last time verizon was in charge of a tech blog it ran into controversy for allegedly prohibiting reporters talking about nsa spying for from writing about net neutrality. verizon say the claims made by the actual editor of the blog were, quote, mischaracterized. >>> elon musk says he's been treated unfairly in a new book about himself. it comes out next wednesday. we have this quote from musk. he says, it's total bs and hurtful to claim that i told a guy to miss his child's birth just to attend a company meeting. i would never do that. that comes from allegations shown in the book that say that he berated that employee for not coming to that meeting so that he could join his wife in the dli delivery room. musk is saying not true. this new book comes out on wednesday. >> okay. he's cut throat. hess just not that cut throat. >> not tha

tim armstrong will remain at his position at aol as it becomes a wholly-owned subsidiary of verizon. now, this is not the first time aol has been involved in a purchase. back in 2000 aol, the top of the dotcom boom, bought and merged with time warner. that is now considered one of the biggest business disasters ever. tech reporter kara swisher row about the deal in a book called there must be a pony in here somewhere, referring to an old joke of a kid digging through a pile of manure figuring there has to be a pony somewhere. >>> other news, frontier airlines is the most complained airline in the united states. according to new government figures. that's just one list. there's also a list of the least on-time airlines. who got that one? frontier airlines got that one, too. then there was the most canceled flights. that one? actually didn't go to frontier, went to envoy airlines, one of several companies that fly the american eagle brand. when you fly those small commuter planes you are usually not usually flying the actual brand painted on the side of the airplane. it's owned by a sm

armstrong will do. this is a natural property. grubhub is a natural property, we know about these unicorns to have a vertical where you literally, you know expedia is out there. expedia is a good company, trip adviser, you could make it with one butting you could travel. that's kind of what people are talking about. whoever does that could be able to beat against google which is what everybody wants. they want to stop google. >> more on google later. charlie ergen having some interesting things to sea after we taped after our live interview on thursday. >>> for that we'll have the open bell and a lot more to watch on "squawk on the street." stay with us. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family ver

tim armstrong and former sec chair michael powell who now is the head of the national cable and telecommunications association. these discussions were a part of the three-day internet and tv expo held earlier this month in chicago. >> you may be wondering what these chairs are doing here. we decided to do something different with the association this year, michael i know last year came out and put on a big old show. this year he thought maybe he would snap chat the whole thing or perhaps parascope, that would have been in bad taste. i know you all don't want another power point as exciting as those can be for everybody. what we decided to do was an actual interview with a real reporter, that would be me. and i also play one on television, on hbo. we're going to do an interview and later we're going to do a bunch of interviews. and throughout the show, peter kofka is going to be interviewing figures. i brought my own chairs. these are the red chairs of the code conference. before that it was all things d, and many many people have sat in these chairs, including steve jobs and bill gates and preside

kudos to tim armstrong for creating value. double the stock on that one. and it will be the brands that matter. tech crunch, "huffington post". >> we are told this was actually all about ad technology. that's what i thought. this is the marriage of content and pipes. they say it is about better advertising. >> a value in the back hend that everybody hopes for. on the front end, branding content. >> if you had been at yahoo! still, would you have been looking at aol or breathing a sigh of relief? >> all the way through. and there was not enough creative value between the two companies over the years. >> so you closed on $13 million of financing just a couple days ago, right? >> yeah that's right. >> that's nice. >> it's great. we're going to use it for expanding in all departments. you know our app really resonates with people 18 to 34. 85% of our users are 34 and younger. so, we're hiring people in that demo to attract people. >> we have a disrupter series. what about the colorful characters outside like the great american ballpark in cincinnati. those guy

it's actually about the advertising network that tim armstrong at aol has built up. so that verizon can use that. it's getting the huff post it's getting the tech crunches sort of in that acquisition but the value here is in the technology infrastructure that aol has perfected. something verizon doesn't do because it's been too busy acquiring phone customers and making deals on that front. what you're going to see from verizon, it's going to get actually into mobile video. it's going to launch a whole new service. >> right. >> and with that it's going to need to have advertising on that platform. that's what this aol deal is about. that's where the $4.4 billion value is. >> not to be difficult here but just educate me. do you know anybody that uses aol, that goes on aol? >> probably not in a very long time. people don't use it for that anymore. what aol has become it's become through this series of content acquisitions, a place for people to go on to these various websites and to attract advertisers on mobile. that's where all the advertising money is going into digi